Compare C2FO to factoring

Find your customers on C2FO

Application Process Complex
Legal review needed Yes
Approval Required, complex
Requirements More concerned with debtor creditworthiness
Collateral Your invoice is sold. UCC rights transfer to factoring company
Guaranties None
Advance rates 70%-90% with balance retained by factor as a reserve
Cost Invoices often funded at a discount. Effective APRs can be 10%-20%
Fees Varies with company
Covenants None
Reporting requirements None
Borrowing max. Limited by invoice amount minus retained balance
Recourse Required for a lower rate
Not required, access funds on demand when needed
None; approved customer invoices are all you need
100% of awarded invoices, net of discount
Name Your Rate™
Only limited by invoices
Not applicable

What to consider with factoring:

  • You may have to provide recourse — a guarantee to the factor that you will cover any losses if your customer does not pay the invoice amount
  • Factoring requires underwriting and may require a minimum number of receivables to be funded to receive a better APR
  • Interest rate and fees will vary depending on the factor company, the type of factoring, and your situation

Why C2FO is a better option than factoring:

  • You retain ownership of your invoices with C2FO
  • With C2FO, you Name Your Rate™ and there are no fees, which makes it more affordable
  • There are no volume limits; you decide which invoices you want your customer to pay early and when you want to use C2FO
  • There is no underwriting, paperwork, or contracts with C2FO
  • There is no recourse or reserves; you access 100% of your awarded invoices net of discount, in as soon as 24 hours
  • You are still paid directly by your customers, only sooner

The working capital guide:

Learn about funding options

For small and midsized businesses


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